Tuesday 22 October 2019

Lufthansa hit by IAG and Ryanair carriers

Lufthansa airplanes stand on the tarmac at the Frankfurt am Main airport, Germany (Stock)
Lufthansa airplanes stand on the tarmac at the Frankfurt am Main airport, Germany (Stock)
John Mulligan

John Mulligan

RYANAIR'S Laudamotion and IAG's Level are battering Lufthansa in Austria and Germany as the low-cost carriers drive down fares to grab market share there.

Lufthansa issued a profit warning yesterday, saying that its short-haul operations in both countries are "affected by sustained overcapacities caused by carriers willing to accept significant losses to expand their market share".

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Ryanair's Laudamotion lost €140m in the 12 months to the end of last March as the Irish carrier took full control of the airline. It expects the Vienna-based airline to become profitable by 2020.

"Price deterioration in Europe caused by market-wide overcapacities and aggressively growing low-cost competitors are putting pressure on yields in the European short-haul market," added Lufthansa.

It now expects earnings before interest and tax for the current financial year of between €2bn and €2.4bn, versus a previously expected range of €2.4bn to €3bn.

Irish Independent

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